SOURCE: FUTURE INVESTMENT INITIATIVE
Time: April 01, 2018
The economy of Saudi Arabia is one of the largest in the Middle East and in the top twenty globally. Over the past 25 years, the Saudi economy has grown by an average of more than four per cent annually, contributing to the creation of millions of new jobs. However, in order to preserve and augment this growth for future generations, the Saudi economy is undergoing a process of diversification and reform.
In April 2016, the Kingdom launched Vision 2030, a plan to help reduce Saudi Arabia’s dependence on oil revenue. Vision 2030, is an ambitious yet achievable blueprint, which expresses the country’s long-term goals and expectations for its economy. Chief among its goals is the increase of non-oil government revenue through added investments, the development of unexploited assets and the implementation of structural reforms. The ongoing privatization of state-owned assets will bring in new and more diverse revenues for the government and new initiatives will open up the country for further investment and business. Such efforts are designed to enhance financial resources and economic stability, which will, in turn, be reinvested for long-term impact.
The blueprint also aims to increase foreign direct investment and the private sector contribution of gross domestic product. To aid this process, measures are being introduced to improve the business environment, to restructure the economic cities, to create special zones and to deregulate the energy market to make it more competitive.
One of the main ambitions of Vision 2030 is the aim to transform Saudi Arabia into a global investment powerhouse. The Kingdom holds strong investment capabilities, which will be harnessed to stimulate the economy and diversify revenues. The investment activities being undertaken by PIF sit at the heart of this goal, acting as an essential vehicle for diversifying government resources and the economy.